ID S1291

Public entities cannot enter into contracts with companies for goods or services unless the contract includes written certification that the company is not boycotting and will not boycott individuals or companies in fossil fuels, timber, minerals, hydroelectric power, nuclear energy, agriculture, or firearms sectors.

Exemptions apply when contract requirements conflict with a public entity's constitutional or statutory duties related to debt, fund management, or when requirements would prevent the entity from fulfilling legal obligations or meeting specific business needs.

Requirements apply only to contracts valued at $100,000 or more with companies having 10 or more full-time employees, with payments wholly or partly from public funds.

"Boycott" is defined as refusing to deal with or terminating business with an individual or organization because of their business sector or failure to meet standards beyond applicable law, without a reasonable business purpose.

Effective date is July 1, 2024, with a 90-day compliance period for existing contracts; contracts failing to comply after that period become void, and pre-July 1, 2024 contracts cannot be renewed without the required certification.